National Republican., 1887-10-10
Premium Paid on Bonds.


According to the official statement, the
government has paid up to Oct. / pre-
miums amounting to $2,6S3,920, In pur-
chasing bonds OF SOL ,422 $50 par value.
This, II Ia claimed, has saved the govern
ment s4, ASS, 600, because, had the bonds
been left TO run, the aggregate OF interest
paid on them during four years for a part
and twenty years for the rest would have
been S7,11l 500. On that basis the adminis
stration claims to have made great saving
for the people.
That Is so, provided absolutely nothing
could have been done with the money dur
ing four and twenty years to come-pro-
vided IL must have been allowed to lie Idle
in the treasury all that time unless paid out
for bonds. But everybody knows that this
is not the case. Not to speak OF the plans
Of Senator Beck, Representative Scott, and
other Democratic leaders, under which the
money would have been loaned out at in
terest with some risk and reat probability
Of favoritism, every dollar Of the money
paid for bonds not yet due would have been
used more profitably by the people had
government not collected 1t by permitting
fraudulent undervaluations OF i'm ports, and
every dollar of II would have been used
more proftably by government, after col
lection, had the administration not con.
temptuously defled acts OF Congress.
undervaluations Of imports during the last
year at less than 10 per cent, which would
amount to $50, 100000. On these imports.
at the general average OF duty rates, duties
amountin to $4,000, 900 were paid, where
as, bad the goods been honestly valued, the
duties demanded would have been much
larger, the goods would not have been i'm
ported at all, and the $4,000, 900 OF revenue
would not have been collected. Thus faith
full enforcement of the laws instead Of col.
lecting s27, ,000000 for permitting violations
of law harmful to home industry, would
have excluded certain fraudulent Imports
and collected nothing, and without spend
ing S24 600 600 for bonds and premiums to
bondholders. the government would still
have lad 100000 less surplus than 1t has
now.
A score OF illustrations of the second
point could be given, but 1t Is enough to re-
member that postal service disgraceful to
the country, and crippling to American com.
merce and manufactures, exists because
Postmaster General Villas defed and dis
obeyed the law requiring an expenditure OF
half a million yearly In securing better mail
facilities between this and other countries.
Honest enforcement OF the act OF Congress
would have brought such good results to
commerce and industry that many times the
outlay would have been realized In year
by American workers aud merchants
So invested, the money would have paid
more than 100 per cent. profit; law break
ing administration preferred to make pre-
teDce Of economy In expenditures, aud
then to pay as premiums to bondholder;
more than five times the $500, 900 thus
saved. In many other ways, which could
easily be mentioned, laws providing for ex
| penditures to promote the public wehart
have been practically defeated, and had
| the laws been faithfully observed the pub
| lie money would have been far more wisely
employed than In the payment of premiums
| to bondholders in order to encourage more
| active speculation.